Myanmar nod for GAIL's 10% stake in A-3 block

Myanmar has formally approved GAIL's proposal to pick up 10 per cent stake in A-3 block awarded to Daewoo International Corporation of Korea in 2004.

GAIL had signed an assignment agreement for equity participation in the off-shore block last year. As per the production sharing contract, the assignment agreement required formal ratification of the Myanmar government.

Drilling of the first exploratory well in A-3 block, which completed recently has resulted in gas discovery. Appraisal of the discovered prospect and further exploratory drilling is likely to commence by the year-end.

The block is spread over 6,780 sq km. GAIL will be the preferred buyer to buy the Daewoo's share of natural gas from the block.

GAIL has commissioned detailed feasibility study for an onland gas pipeline route via north-east India and the study will be available by April-end. This would be presented to the Myanmar side in a joint meeting scheduled in May.

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